At long last CEO, Lev Dawson sees fit to start trickling news out before the shareholders meeting on Mar. 26th at 3PM.
Chisy
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Monday March 26, 2:09 pm Eastern Time
Press Release
SOURCE: Valence Technology
Valence Technology Signs Memorandum of Understanding to Enter Into Licensing Agreement With Shanghai Optical Communications Corp.
HENDERSON, Nev., March 26 /PRNewswire/ -- Valence Technology, Inc. (Nasdaq: VLNC - news), a leader in the development and commercialization of lithium- ion polymer rechargeable batteries, today announced that it has signed a memorandum of understanding to enter into a technology transfer agreement with China-based Shanghai Optical Communications Corp., a leading optical communications company owned by the Shanghai Municipal People's Government.
The final agreement would allow the Shanghai Optical Communications to manufacture lithium-ion polymer batteries using Valence's proprietary material, process and design of lithium-ion polymer batteries.
After the successful negotiation and execution of this agreement, Valence Technology will receive an initial licensing fee and quarterly royalty payments based on net revenues derived from the sale of lithium ion batteries manufactured by Shanghai Optical Communications Corp. using Valence's proprietary technology.
Dai Ao-Qian, General Manager of Shanghai Optical Communications Corp, stated, ``A joint development agreement represents a significant step for us as we begin to use Valence's patented materials, processes and designs to manufacture and sell lithium-ion polymer batteries. Our use of Valence's technology will enable us to rapidly and more effectively leverage our strengths in the communications industry in Shanghai while undertaking projects in communications and information fields around the world.''
Michael Mahan, Senior Vice President of Licensing, Sales and Marketing of Valence said, ``This opportunity represents Valence's initial entry into the vast Chinese consumer electronics marketplace. The final execution of a licensing agreement with SOCC, in accordance with our stated business strategy will represent an opportunity to increase the international usage of our proprietary lithium-ion polymer technology. We look forward to Shanghai Optical Communications Corp. becoming a welcome addition to the growing group of Valence global licensees.''
The arrangement with Shanghai Optical Communications Corp. is subject to the negotiation and execution of a definitive technology transfer agreement.
About Shanghai Optical Communications Corporation
The Shanghai Optical Communications Corporation is a high-tech company under the direct leadership of the Shanghai Economic Committee. The company takes responsibility for developing and planning project investments, foreign capital absorption, foreign advanced technologies integration and communications product localization in the optical communications industry. The company is wholly-owned by the Shanghai Municipal People's Government. Shanghai Optical Communications Corporation organization, joint ventures have been established with Lucent Technologies of Shanghai.Ltd.; Shanghai Fiber Optics Co., Ltd; the Scientific Atlanta of Shanghai Ltd.; and with Alcatel Shanghai Optical Fibre Cable Co. Ltd. These four joint ventures achieved sales of over RMB 2.4 billion in recent years with an annual growth of over 25%-30% expected going forward.
About Valence Technology, Inc.
Valence is the leader in the design, manufacture and marketing of rechargeable lithium-ion polymer batteries. Valence Technology's patent portfolio for lithium-ion polymer battery technology consists of over 790 issued and pending worldwide, including 284 issued in the U.S. In December 2000, Valence acquired Telcordia Technologies Inc.'s remaining patents in lithium-ion polymer battery technology. Valence operates facilities in Henderson, Nevada and Mallusk, Northern Ireland. Valence is traded on the Nasdaq National Market under the symbol VLNC. Valence can be found on the Internet at valence.com .
The information contained herein includes forward-looking statements that involve risks and uncertainties. In particular, the establishment, development and potential success of product development and production outcomes are subject to risks and uncertainties both within and outside Valence's control. Among the factors that could cause actual results to differ are the ability of Valence to integrate licensing into its operations, including the management of the existing Telcordia licenses. These risk factors are described from time to time in Valence's SEC reports, including on Form 10-K for the year ended March 31, 2000 and on Form l0-Q for the quarters ended June 30, 2000 and September 30, 2000 to which readers are referred.
SOURCE: Valence Technology |
